BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 865 (Alejo) - State Energy Resources Conservation and
Development Commission: contracts, grants, and loans: diversity.
-----------------------------------------------------------------
| |
| |
| |
-----------------------------------------------------------------
|--------------------------------+--------------------------------|
| | |
|Version: July 6, 2015 |Policy Vote: E., U., & C. 9 - 2 |
| | |
|--------------------------------+--------------------------------|
| | |
|Urgency: No |Mandate: No |
| | |
|--------------------------------+--------------------------------|
| | |
|Hearing Date: August 17, 2015 |Consultant: Marie Liu |
| | |
-----------------------------------------------------------------
This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 865 would require the California Energy Commission
(CEC) to develop an outreach program to inform women,
minorities, disabled veterans, and gay, lesbian, bisexual, and
transgender (LGBT) businesses of CEC funding opportunities. This
bill would also require CEC contractors, grantees, and loan
awardees to report demographic information and to implement a
diversity outreach plan for subcontractor opportunities.
Fiscal
Impact: Ongoing costs of $300,000 annually to the Energy
Resources Program Account (General Fund) to the CEC for
implementation of the outreach program.
Background: Existing law directs various agencies to take actions to
increase contracting with women, minority, disabled veteran, and
LGBT businesses. For example the California Public Utilities
AB 865 (Alejo) Page 1 of
?
Commission (CPUC) established the Supplier Diversity Program
under General Order 156 which encourages greater participation
in utility contracts by women, minority, disabled veteran, and
LGBT business enterprises. Under that program, regulated
entities must report annually to the CPUC a detailed and
verifiable plan, with goals and timetables, for increasing
participation from women, minority, disabled veteran, and LGBT
owned businesses in all categories of procurement. The CPUC is
then required to report annually to the Legislature regarding
the success of the program.
On April 5, 2015, the CEC adopted a resolution to implement a
policy to reflect the CEC's commitment to diversity outreach for
all its programs. The resolution notes the unique ability of the
CEC to promote diversity by providing opportunities for
increased participation in CEC programs of small businesses and
women, minority, disabled veteran, and LGBT owned businesses.
Proposed Law:
This bill would require the CEC to develop an outreach program
to inform the most qualified loan and grant applicants and
contractors about funding opportunities that includes women,
minority, disabled veteran, and LGBT business enterprises. The
program must have a process for tracking the diversity of
contractors, loan recipients, and grant recipients.
This bill would also require the CEC to develop guidelines that
require the a party that receives a contract, grant, or loan
from the CEC after July 1, 2017 that exceeds one million
dollars, or a different threshold or criteria as determined
appropriate by the CEC, to do the following:
Report to the CEC on the demographic makeup of its management.
Develop and implement a detailed outreach plan for increasing
subcontractor opportunities for women, minority, disabled
veteran, and LGBT business enterprises in California.
Report to the CEC regarding its plan and its implementation
outcomes. This report would be a public document and would be
AB 865 (Alejo) Page 2 of
?
required to be available on the CEC's website.
The CEC would be required to develop these guidelines at a
publically noticed meeting where the public would be able to
provide comment.
This bill would also require the CEC to consider establishing a
Diversity Task Force to consider and make recommendations about
diversity in the energy industry after the receipt of initial
plans and reports from contractors and grantees.
Staff
Comments: To implement the program created in the bill, the CEC
would need to first develop guidelines and establish new
policies and procedures for all funding agreements. Then the CEC
would need to work with award recipients to establish an
outreach plan, perform additional outreach, and to track the
diversity of award applicants. To accomplish these tasks, the
CEC anticipates needing approximately two new staff positions at
a cost of $300,000 annually. These costs would likely also cover
the costs of implementing the Diversity Task Force if the CEC
decides to do so convene the task force.
-- END --